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87 100550
<br />UNIFORM COVENANTS. Borrower and lender covenant and agree as follows:
<br />1. Payment of Principal and Interest-, Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a, written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum i "Funds ") equal to
<br />` one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument, (b) yearly leasehold
<br />payments orground rents on the Property, if any; (0 yearly hazard insurance premiums; and id) yearly mortgage insurance
<br />premiums, if any. These items arecalled "escrow items. Lender mayestimate the Funds due on thebasis of current data and
<br />a
<br />reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />f` state agency (including lender if Lender is such an institution). lender shall apply the Funds to pay the escrow items. tender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest ut be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Burrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to die Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />if the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow ire ms when due, the excess shall be, at
<br />Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to lender arty
<br />amount necessary to make up the deficiency in une or more payments as required by lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, nu later than
<br />immediately prior ro the saleof the Properly or its acquisition by lender. any Funds held by Lender a the rime of application
<br />as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, of prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due: and last, it) principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2,or if not paid in that manner, Burrower shall pay them on
<br />timedirectly to the person owed payment. Burrower shall promptly furnish ma Lender all not ices of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly, Burrower shall promptly furnish to Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any Tien which has priority over this Security Instrument unless Borrower: tat`
<br />agrees in writing to the payment of the ohhgation secured by the lien in a manner acceptable to Lender, !b; contests in good
<br />faith the lien by, or defends against enforcement of the lien in. legal proceedings which in the Lender'; opinion operate it)
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or t ci secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien at this Security Instrument. if Lender determines that any parr of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Burrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br />giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now exisung or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Burrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable ru Lender and shall inchude a standard mortgage clause Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give ro Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt nut ice at nct: insurance ca rrier and
<br />Lender. lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds ;hall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is ec ntintically feasible and Lenders see:irity is not lessened. If tite
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance pr uceds shall be
<br />applied to the sums secured by this Security Instrument, whether or riot then due, with cry excess paid to Burrower. If
<br />Borrower abandons the Property, or dues nor answer within t0 days a notice faun Lender char the insurance carrier has
<br />offered tosettlea claim, then Lender may collect the insurance proceeds Lender may use the proceeds n) repair or restore the
<br />Property or to pay suits secured by this Securiy Instrument, whether or not ;lien due The sit -day period will begin w hen the
<br />notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any appliuetion of proceeds ro principal shall nor extend or
<br />postpone the due dare of the nu,nthly payments referred to in paragraphs I ,and ? or change the :nun ;nr of the payments It
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance politics and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to lender na the c•xienr of the sums secured by tits. Sucurav
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall nor destroy, damage or subst rniaily
<br />change the Property, allow the Pruperry idt deteriorate or comatnit .v:ute• If this Security Instrument is on .a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to tire Property, the leasehold and
<br />ter ride shall not merge unless Lender agrees to the merger in writing
<br />_...,
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. It Borrimur falls to perform the ,ocenanrs
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significanth ,ffect Lenders
<br />rights in the Property (such as a pro ceding in banknaptn, pn,hatc, 6x coodrntnarion oa to rnf„rce lac" or rrgu!ativa, ;, rhea
<br />Lender may do and pay for whatever is necessary ru protect the calveof the• Properry and Lender s rights na rite Pruprrte
<br />Lender's actions may include paying any ,tub secured by a lien which has priority oN et the tin unn Instninuatr. _sl,pe.innc tit
<br />wort, paying reasonable attorneys tic, and eructing on the Property to make it pair, 1 en!cr may take action
<br />under this paragraph 7, I.codet dues not have to d., so
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<br />Anv anumnts disbursed by Lender undue !his paragraph ' .! -tali he' `11)" .ullin,on,,l :.iCb! ,t B„r•, r sccurrd ht chi,
<br />`ecurity Instrument. Unless Burrower and Lender agree,'. other terrn,,,t payment. thc,r .nn, ::., sh.Ji he it mitt. t rn,nt
<br />f
<br />the late if dishursement at the Nitre rarr.iod shill Ix pay.,N( %k uh uncre,t,.;pkni n:,i :cc it, ,n I e"d, .., 8,,,,owt. -r ,cyi:r >nitc
<br />pay ir•enr
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